The market doesn't fully grasp the transition that Newcastle is going through, heck even the description of he company is wrong here in CAPS. It used to be a REIT that owned junk that I don't like, such as CDOs. It is transitioning into one that owns senior care facilities. I like that much better. If the transition is successful, the stock should rebound significantly.

Newcastle also announced that its Board of Directors has unanimously approved a plan to spin off all of its Excess MSRs and certain other residential assets. Newcastle intends to effect the spin-off in the first quarter of 2013 by distributing shares of its subsidiary, New Residential Investment Corp.

It is hard to tell what the leverage is for NCT. They account for their investments where the write down all assets to market and report all debt at face value. During the financial crisis they wrote a lot of assets to zero to 10 cents. They cannot write a lot of this back up due to accounting. In addition, a majority of their assets are held in CDO's that are non recourse to NCT but they are required to consolidate them. Therefore, the balance sheet is of very limited use in understanding NCT.

I think it will perform well because it is a well ranked stock and it is very down from its all time high. They usually pay large dividends but are currently using that money to pay down debt to balance their numbers better to make a big run later on.